John Foley, Chairman and Chief Executive Officer of Peloton Interactive Inc. speaks during a...[+] Bloomberg Television interview in New York on Tuesday, November 5, 2019. 2019 Bloomberg Finance LP
John Foley, CEO of Peloton, lost $400 million on Thursday night after the fitness company announced that it expects to earn less revenue in fiscal next year due to weaker-than-expected quarterly earnings.
Foley was barely able to maintain his billionaire status, as shares of the company plunged 24% after hours trading on Thursday. The company is well-known for its internet-connected stationary bikes and other equipment. Forbes estimates that Foley is worth $1 billion today, down from $1.4 million at the close of market trading Thursday. Foley's Peloton stake, which he cofounded back in 2012, now stands at $900 million. Nearly 80% of that is his stock options. Since its IPO, Foley has made an estimated $100 million from the sale of shares in Peloton.
Peloton posted a net loss in the period ended September 30th at $376 million or $1.25 per shares on $805 million revenues. The company had a net profit of $69.3 million in the same time period a year ago. The company's subscriber growth is also slowing. According to Wall Street Journal, Peloton had the lowest number subscribers in this quarter since its public listing in 2019.
Foley wrote to shareholders that Peloton is cutting its 2022 fiscal-year guidance due to the economic reopening. This represents a 20% drop from the $5.4billion it had anticipated three months prior.
Foley stated in the letter that while we were pleased with our first quarter results, they are not as strong as our guidance. However, Q2's soft start and limited visibility into our near term operating performance have led to us revising our fiscal year outlook.
The weaker-than-expected earnings of Pelotons are far from those that were earned earlier in the pandemic, when the Stay-At Home stock surge was a success. As a result of the closing of gyms across the country, shares in the fitness company shot up in March 2020. They reached an all-time high $162 per share in December 2020. At 8 PM ET Thursday night, shares were trading at $60.11.